U.S. House of Representatives
WASHINGTON, DC 20515
January 1998
Dear Taxpayer:
What is the cost of our record-high national debt?
In 1997, despite relatively low interest rates, a declining deficit, and a strong economy, interest on the national debt topped $355 billion. That is by far the highest in U.S. history. Our annual interest cost is up over 20% in just the last three years.
In that same 1997, Californians--all of us combined--paid record-high federal taxes. But all of the income taxes we paid amounted to barely a quarter of last year's interest on the national debt.
Think of it this way: not a single penny of the taxes you paid with your IRS Form 1040 went toward a stronger national defense, improved transportation, tougher crime fighting, or a better environment. Instead, your hard-earned taxes--and all of the federal income taxes of every American west of the Mississippi--went to nothing but interest on the debt. This is a tragic waste.
That is why fiscal responsibility in Washington remains so important. To insure that Congress actually follows through on our plan to stop increasing the national debt by 2002, it is essential that we completely overhaul the broken-down federal budget process. There is real hope on this front: this year, the House of Representatives is scheduled to act on my Budget Process Reform Act, which over 200 of my colleagues have
sponsored. In 1998, I hope finally to see this essential discipline become law.
As Chairman of the House Policy Committee, I commissioned this Annual Report to help my colleagues and my constituents assess the size of our problems. I have found it an invaluable resource. I hope you will, too.
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